Ajuy completes 31 projects, but only 2 from 2025 funds
By Rjay Zuriaga Castor

ILOILO CITY — The municipal government of Ajuy, Iloilo, completed 31 projects in 2025, but only two were funded under that year’s 20% Development Fund (DF), with the remaining 29 charged against continuing appropriations from previous fiscal years.
The Municipal Engineering Office (MEO) confirmed a Commission on Audit (COA) finding that only two of the 15 projects funded under the 2025 DF were completed by December 2025.
Under the Local Government Code of 1991, local government units must set aside at least 20% of their annual national tax allotment for development projects.
The same law keeps appropriations for capital outlays valid until they are fully spent or the project is completed, allowing unfinished projects to be carried over as continuing appropriations.
The completed projects included 16 concrete roads, four drainage systems, two school buildings, two concrete footwalks, the first phase of a public market, a multipurpose building, a sports facilities improvement project, an overflow structure, a perimeter fence, a road grader, and an emergency vehicle.
“During the first quarter of 2025, implementation focused heavily on completing carried-over projects under continuing appropriations. Regarding the 2025 current fund, 2 projects were completed early, 2 were ongoing, and 8 were under procurement during that initial quarter,” the MEO said in a statement Friday.
As of Oct. 20, the MEO said eight more projects had been completed, bringing the total to 10 of the 15 projects under the 2025 current fund.
These later accomplishments, however, fall outside the January to December 2025 period covered by the COA audit.
Ajuy Mayor Loida Espinosa attributed the implementation delays to restrictions imposed during the 2025 midterm elections and to changes in priorities following consultations with barangays.
“The 2025 elections and the subsequent election-related restrictions affected the project implementation timeline. The audit report covers the period from January to December 2025, while the current administration officially began its term in July 2025,” she said.
The Omnibus Election Code bars the release and disbursement of public funds for public works within 45 days before a regular election, and the midterm polls were held on May 12, 2025.
Espinosa said the municipal government conducted a situational analysis in all barangays to identify priority projects based on community needs. This led to the deferral or discontinuation of some initially planned projects and the prioritization of streetlight installations.
Village fence, road pockmarks
The MEO defended the perimeter fence at People’s Village. It said the project was initiated through a barangay resolution, approved by the Municipal Development Council, and included in the Annual Investment Plan.
The office said engineering assessments found the area prone to heavy surface runoff and overflow from surrounding rice fields and hillsides.
The structure was therefore designed to serve as both a perimeter fence and a floodwall protecting about 140 residential units.
Espinosa also rejected as “false and misleading” the allegations that the People’s Village fence was overpriced.
“The project cost must be assessed based on the approved Program of Works, detailed cost estimates, technical specifications, and applicable procurement and construction standards,” she said.
On the Nabalas Road concreting project, the MEO described the pockmarks noted in the audit as minor surface defects that may occur during the early curing period.
It said the project remained under the mandatory one-year defects liability period. The contractor had been directed to make repairs at its own expense before the release of retention funds and the issuance of the certificate of final acceptance.
Vehicle acquisitions
COA also raised concerns over the municipal government’s multimillion-peso vehicle acquisition program. The program covered the purchase of 25 vehicles, an ambulance, and a patient transport van with dual air conditioning.
The audit body said the acquisition of 25 additional vehicles to be managed by the local government exceeded the local government’s actual operational capacity.
Espinosa said the local government initially executed memoranda of agreement with recipient barangays for the vehicle transfers, but COA required deeds of donation to document the transfer of ownership.
She said the vehicles had been donated to the respective barangays and that the required documentation was already being addressed.
Espinosa maintained that the funds remained accounted for and that projects would proceed in accordance with applicable laws and procedures.
“Let us review the actual projects and facts before drawing conclusions. The accomplishments go beyond just two projects,” she added.
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